Valued with a market capitalization of $77.2 billion, Royal Caribbean Cruises Ltd. (RCL) is a cruise company that operates a diverse portfolio of brands, including Royal Caribbean International, Celebrity Cruises and Silversea Cruises, serving both mass market and luxury travelers. The Miami, Florida-based company is known for its modern fleet, innovative ships and destination-focused itineraries. It is scheduled to announce its fiscal fourth quarter 2025 results in the near future.
Ahead of this event, analysts expect this cruise company to post earnings of $2.79 per share, up 71.2% from $1.63 per share in the same quarter last year. The company has surpassed final Wall Street estimates in each of the last four quarters. Its earnings of $5.75 per share in the previous quarter beat the forecast by 1.2%.
For the current fiscal year, which ends in December, analysts expect RCL to post a profit of $15.64 per share, up 32.5% from $11.80 per share in fiscal 2024. Additionally, its EPS is expected to grow 14.5% year-over-year to $17.91 in fiscal 2026.
RCL stock has gained 23.7% over the past 52 weeks, outperforming both the 16.9% return of the S&P 500 Index ($SPX) and the 6.9% gain of the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) over the same time period.
On December 11, RCL shares rose 7.4% after the company announced a new $2 billion share buyback program and declared a quarterly dividend of $1 per share. Investor sentiment was further boosted by data from Bank of America Corporation (BAC) showing that cruise-related consumer spending rose 11.2% year over year in November, despite a broader decline in overall travel spending.
Wall Street analysts are moderately bullish on RCL stock, with an overall rating of “Moderate Buy.” Among the 25 analysts covering the stock, 17 recommend “Strong Buy”, one indicates “Moderate Buy” and seven suggest “Hold”. RCL’s average price target is $330, indicating a potential upside of 16.5% from current levels.
On the date of publication, Neharika Jain had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com